The Vault
Is it time to expand your small business?
by Graham Barber

Knowing when to expand a small business is a decision faced by many successful small business owners. Grow too quickly and you risk incurring higher costs your business may not be able to support - or grow slowly and miss out on lucrative opportunities.

"Most importantly, be honest with yourself and make sure your plans fit with the reality of the marketplace and with your personal goals," says Diane Giard, Vise President, Small Business at Scotiabank. "Expansion is a very exciting opportunity when you do your homework and have a clear idea of what you want out of your business."

If you own a small business you may have thought about expanding it. Before making a decision about the expansion, Scotiabank suggests you look at five key factors;

The marketplace

Is your marketplace big enough ton handle and maintain your growth? Or will you need to find new markets? Will you be offering a new or improved product? How will you attract new customers?

Your bottom line

What additional costs will you incur? Will you need more staff, more space, more equipment, or financing? What additional revenue generated justify any increased costs?

Your existing customers

How will the expansion impact your current customers? You don't want to lose them, so think about how changes will affect them. Will they continue to get the same quality of service?

Your suppliers

Expanding a business is not something you can do alone. If you are growing, you are going to need suppliers who can grow with you. Can your suppliers meet your new demands? And if not, do you know who can?

Your lifestyle Finally, think about what impact a business expansion will have on you. How much more time will be required? How will your family react?

If you make the decision to expand, revisit your business plan and revise it as necessary. Build on the information and experience you have already acquired and see how the new, larger business will work on paper first.

Scotiabank has the knowledge and resources to help small businesses owners succeed. With a small business expert in every branch, Scotiabank is here to help small business owners find the money to reach their goals. For more information, go to your local branch or visit www.scotiabank.com/small business.

The proceeding information was provided by Graham Barber, Branch Manager of Scotiabank, Alcona Branch.

The Scotiabank, Alcona Branch, is located at 1161 Innisfil Beach Road, (705) 431-6116. The Vault is a weekly series of articles provided by Graham Barber with financial advice and suggestions.